Reinsurance Group Of America, Incorporated · NYSE:RGA
Reinsurance Group Of America — Q2 2024 Earnings Presentation
21 slides from Reinsurance Group Of America's earnings presentation, Aug 2, 2024
Slide 1: 2Q24 Earnings Presentation
2Q24 Earnings Presentation Reinsurance Group of America, Incorporated 08.01.2024 1
Slide 2: Safe Harbor
Safe Harbor This document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and federal securities laws including, among others, statements relating to projections of the future operations, strategies, earnings, revenues, income or loss, r
Slide 3: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures Non-GAAP Financial Measures Reinsurance Group of America, Incorporated (the “Company”) discloses certain financial measures that are not determined in accordance with U.S. GAAP. The Company principally uses such non-GAAP financial measures in evaluating performance
Slide 4: Second Quarter Key Messages
Second Quarter Key Messages Strong earnings performance and momentum Q2 adjusted operating income of $5.481 per diluted share Trailing twelve months adjusted operating ROE of 15.3%1 Strong results in Asia Traditional and Financial Solutions businesses, the U.S. Traditional business, and EMEA F
Slide 5: Consolidated Results
Consolidated Results Adjusted operating EPS1 Trailing 12 month Continued adjusted operating ROE1 strong $5.48 $5.48 15.3% 15.3% earnings, new $4.40 $4.40 13.0% business 10.9% momentum 2Q23 2Q24 2Q23 ex 2Q24 ex 2Q23 2Q24 2Q23 ex 2Q24 ex Notable Notable Notable Notable Items Items Items Items 5 1 Plea
Slide 6: Q2 Results by Segment
Q2 Results by Segment U.S. and Latin America: Traditional results reflected favorable in-force management actions, partially offset by client reporting Pre-tax adjusted operating income (loss), adjustments, while overall claims experience 2Q24 2Q23 was in line with expectations; Financial excludin
Slide 7: Biometric Experience
Biometric Experience Favorable Total Company $ in millions biometric $150 $134 $138 experience1 over the previous five $100 quarters $54 $58 $53 $50 $34 Claims experience $20 not reflected in $2 $0 income will be -$14 recognized over -$50 2Q23 3Q23 4Q23 ($43) 1Q24 2Q24 the remaining life Claims Expe
Slide 8: Premium Growth
Premium Growth Continued momentum Constant 2Q24 2Q23 % Traditional premium growth Premiums1 YTD YTD Change Currency % Change² U.S. and Latin America $3,542 $3,365 5.3% 5.1% Traditional 7.6% 6.7% Canada Traditional $644 $602 7.0% 7.8% 5.9% 7.0% 6.1% EMEA Traditional $993 $867 14.5% 13.6% 4.9% APAC Tr
Slide 9: Non-Spread Investment Results
Non-Spread Investment Results Investment yield1 New money rate2 Diversified portfolio and broad investment Q2 new money rate of 6.22%, well above platform supports portfolio income portfolio yield Variable investment income was positive but Increase over prior quarter primarily reflects belo
Slide 10: Investment Portfolio
Investment Portfolio Asset allocation1,3 Disciplined approach focuses Investment Grade Bonds Our investment on strong credit underwriting 1.2% 1.2% with emphasis on higher- 3.0% 4.2% 0.2% Mortgage Loans on Real Estate strategy Funds Withheld at Interest quality, diversified fixed income assets 5.2
Slide 11: Commercial Mortgage Loans (CML)
Commercial Mortgage Loans (CML) Experienced internal team has managed Commercial mortgage through multiple real estate cycles; utilizes investment by property type1 High quality, downcycle playbook Disciplined portfolio underwriting and 5.1% 0.6% Retail well-diversified resulting metrics provide
Slide 12: CML Office Loan Exposure
CML Office Loan Exposure1 CML office loan exposure Portfolio metrics Portfolio of represents 1.8% of total cash and invested assets selective, first Average Office loan portfolio is LTV DSCR 61% 1.92x loan size lien loans primarily suburban ~$11 M focused; average loan size of ~$11 million Origi
Slide 13: Capital and Liquidity
Capital and Liquidity Capital Leverage ratios Ample liquidity Strong capital position Leverage ratios within our targeted $949 million2 at the holding company ranges Excess capital position of $1.0 billion Temporary increase due to timing from cash received on new transactions and Issued
Slide 14: Capital Management
Capital Management Strong deployment Active management Active and Managing capital over the long-term Priority to deploy capital into organic growth and in-force transactions balanced Solid quarter in deploying capital into in-force transactions, adding expected long-term value to RGA Raised
Slide 15: Long-Term Business, Long-Term Success
Long-Term Business, Long-Term Success A global leader, differentiated Book value per share (ex-AOCI)1 market position total return growth2 15-Year 10.0% CAGR 10.4% CAGR3 Diversified platform, well-balanced risk profile $146.22 $149.01 Disciplined underwriter, proactive $113.04 risk manager L
Slide 16: Appendix
Appendix 16
Slide 17: Pre-Tax Income Reconciliation
Pre-Tax Income Reconciliation 2Q24 2Q23 Pre-tax income1 $269 $265 Increase in credit allowance and investment impairments due to Investment-related market conditions Change in allowance for credit losses and impairments 18 5 Net losses on sale of fixed maturity Net losses on sale of fixed maturi
Slide 18: Reconciliations of Non-GAAP Measures
Reconciliations of Non-GAAP Measures 18
Slide 19: Reconciliations of Non-GAAP Measures
Reconciliations of Non-GAAP Measures 19
Slide 20: Reconciliations of Non-GAAP Measures
Reconciliations of Non-GAAP Measures 20
Slide 21: ©2024 RGA. All rights reserved.
©2024 RGA. All rights reserved. No part of this publication may be reproduced in any form without the prior permission of RGA. The information in this publication is for the exclusive, internal use of the recipient and may not be relied upon by any other party other than the recipient and its affili
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